Nvidia’s $900M Acqui-Hire of Enfabrica Secures Talent and Tech

In September 2025, Nvidia spent more than $900 million to hire Rochan SankarDealroom has a profile for this one. Try Dealroom →, CEO of Silicon Valley chip startup Enfabrica, along with other staff, and to license the company’s technology. The deal, paid in cash and stock, also marked Sankar’s move to Nvidia.

Enfabrica, founded by veterans from Broadcom and Alphabet, had raised $260 million in venture funding before the deal. Its work focused on one of the biggest bottlenecks in AI computing: how to connect tens of thousands of chips so they can operate effectively as a single system. The company’s technology reportedly allows up to 100,000 AI chips to be strung together before performance begins to degrade.

The acquisition—described by some as part acquihire, part technology licensing—underscores Nvidia’s push to strengthen its position in AI infrastructure. The company’s GPUs dominate the market for training large AI models, but ensuring those chips run at full capacity depends on high-speed, cost-efficient networking. Enfabrica’s solutions were designed to reduce idle time and rein in the expense of memory chips in data centres, addressing exactly that challenge.

The move follows a trend among major tech players. In recent months, Meta acquired a near-half stake in Scale AIand tapped its CEO Alexandr WangDealroom has a profile for this one. Try Dealroom → to shape its AI strategy, while Google absorbed key staff from Windsurf after an attempted takeover by OpenAI.

Sources:
Reuters
CNBC
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J.V.